3 top growth shares I might buy in August

These 3 growth shares are on my watchlist.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

a woman

I think it's a good idea to know which shares you'd buy in the upcoming few weeks so that you don't have to do research after you have investment cash ready.

Obviously, share prices change all the time so your share target may change if they aren't as good value.

However, if the prices stay as they are then I'm probably going to buy one of these top growth shares:

Challenger Ltd (ASX: CGF)

Challenger is Australia's leading annuity provider, it turns a retiree's capital into a guaranteed source of income. This is a very valuable service as many retirees don't have the time or skill to know how to manage their retirement money.

Not only is its retiree target age group, over-65s, going to increase by 75% over the next two decades but the government also just introduced new rules in the budget where every superannuation fund must offer its members an option for income for life. This could provide a big boost for Challenger

The share price has fallen back in recent months due to rising interest rates, however its underlying profit is on course for strong rises over the next few years.

It's currently trading at 17x FY19's estimated earnings.

Costa Group Holdings Ltd (ASX: CGC)

The food producer is one of the largest fresh food growers. It produces tomatoes, berries, citrus fruit, avocadoes and mushrooms.

It has grown at a good rate since it first listed thanks to organic growth and acquisitions. It's becoming a global food player and keep could keep producing impressive results as demand increases from the Chinese middle class, general food scarcity and changing healthy food habits in Australia.

It's currently trading at 26x FY19's estimated earnings.

BETANASDAQ ETF UNITS (ASX: NDQ)

The US tech shares have seen a large sell-off since Facebook's disappointing update. The social media giant is down over 20%, although it is substantially higher than when the Cambridge Analytica scandal was occurring.

Over the long-term I expect that Facebook, Alphabet (Google), Microsoft, Apple and Amazon will keep being long-term winners considering the revenue growth that they are all creating. Short-term issues create good opportunities to buy quality shares at beaten-down prices.

Foolish takeaway

At the current prices I think it will be quite difficult to choose between Costa and Challenger because both of them are trading at attractive value for the long-term growth they are likely to create.

Motley Fool contributor Tristan Harrison owns shares of Challenger Limited and COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS, Challenger Limited, and COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A woman is excited as she reads the latest rumour on her phone.
Growth Shares

Here's why experts rate these ASX 200 growth shares as buys

Healthcare, retail, and lithium... here's why analysts rate these growth shares highly right now.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Broker Notes

Morgans names the best ASX 200 growth shares to buy in March

These growth shares have been tipped for big things by a leading broker...

Read more »

a small child and a pug dog sit in a go cart wearing old fashioned drivers headress and goggles as the drive along a country road with the boy holding his arm in the air and shouting as if celebrating their performance behind the wheel.
Growth Shares

Top ASX growth shares to buy in March 2023

Could these growth stocks be set to hit the accelerator?

Read more »

A businessman hugs his computer and smiles.
Growth Shares

Buy and hold these ASX 200 shares: brokers

These could be great options for investors looking for buy and hold investments.

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

Analysts say these exciting ASX growth shares are buys this month

These could be the growth shares to buy right now according to analysts.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Growth Shares

2 explosive ASX growth shares to buy this month: analysts

There are different levels of growth and these shares are in the clouds...

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

2 ASX growth shares to buy: Goldman Sachs

Goldman Sachs believes these ASX shares are well-positioned for strong growth.

Read more »

A young man sits at his desk working on his laptop with a big smile on his face due to his ASX shares going up and in particular the Computershare share price
Growth Shares

These are the ASX 200 shares to buy in March: experts

Now could be the time to pounce on these ASX 200 shares.

Read more »